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NCI

ZZainb7y ago
hi sir, When calcualting NCI For a partial goodwill policy Nci is calculated only as nci % x NA at ye We should not take the NCI% x post acquisions Why is that, could u explain the issue here plz Thanks
P2-D2P2-D2Tutor7y ago#1
Hi, If we use the partial method then taking the NCI% of the net assets will give us the same figure if we take the NCI at acquisition and add the NCI% of the post acquisition profits. Why? The NCI at acquisition is the NCI% x S's net assets at acquisition and if we then add the NCI% of the post acquisition profits, the net assets at acquisition plus the post acquisition equal the net assets at the reporting date. Thanks
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